The South Indian Bank (SOUTHBANK) investor relations material

Executive summary

• Net profit for Q3 FY26 reached INR 374 crores, up 9% year-over-year, with robust operating profit and improved asset quality.

• Strategic shift from corporate to MSME and retail segments drove portfolio diversification and higher disbursements.

• Digital transformation and process improvements enhanced operational efficiency and customer experience.

• Unaudited consolidated and standalone financial results for the quarter and nine months ended December 31, 2025, were reviewed and approved by the Board and Audit Committee.

• The results include the performance of the bank and its subsidiary, SIB Operations and Services Limited.

Financial highlights

• Q3 FY26 profit after tax reached ₹374 Cr, up 9% YoY; total income grew 7% to ₹1,367 Cr.

• Gross advances rose 11.3% YoY to ₹96,764 crores; deposits increased 12% to ₹1,18,211 crores.

• Net interest margin was 2.86%; ROA at 1.07% and ROE at 13.49%.

• CASA balances increased 15% YoY to INR 37,640 crores; CASA ratio improved to 31.84%.

• Gross NPA reduced to 2.67% and Net NPA to 0.45%, reflecting strong asset quality.

Outlook and guidance

• Loan growth guidance maintained at 12% YoY, with potential for higher growth in the January-March quarter.

• NIM expected to remain stable, with slight downward bias due to repo rate cut, but deposit repricing to offset impact.

• ROA expected to improve to 1.15-1.2% over the next 12 months, driven by portfolio growth and NIM stabilization.

• Credit cost expected to remain at current low levels (7-8 bps), with recoveries outpacing new slippages.

• Focus on improving branch productivity, cost optimization, and expanding non-branch distribution.